“We
are focused on maintaining our strong balance sheet while taking
advantage of new opportunities presented in the current environment,
such as the recently announced expansion of our Silver Dollar Pipeline
into the core of the Midland Basin.”

JP Energy reported Adjusted EBITDA of $12.1 million for the fourth
quarter of 2014 and $38.9 million for the year ended December 31, 2014,
excluding $2.1 million and $7.2 million, respectively, of non-recurring
charges that were primarily associated with our IPO and the previously
disclosed product measurement and quality control issue in our Refined
Products Terminals segment that was substantially settled in the fourth
quarter.

“Since the completion of our IPO in October, we are focused on executing
our growth plan in spite of challenging industry conditions,” said J.
Patrick Barley, Chairman and Chief Executive Officer of JP Energy. “We
are focused on maintaining our strong balance sheet while taking
advantage of new opportunities presented in the current environment,
such as the recently announced expansion of our Silver Dollar Pipeline
into the core of the Midland Basin.”

Review of Segment Performance

Crude Oil Pipelines and Storage – Adjusted EBITDA for the Crude Oil
Pipelines and Storage segment was $4.7 million for the fourth quarter of
2014 and $20.2 million for the year ended December 31, 2014, compared to
$4.4 million for the fourth quarter of 2013, and $13.4 million for the
year ended December 31, 2013. The increase was primarily due to the
acquisition of the Silver Dollar Pipeline System in October 2013 and
subsequent expansions of that system. Adjusted EBITDA for the fourth
quarter and year ended December 31, 2014 was impacted by $0.7 million in
one-time costs associated with a temporary service outage that occurred
to make repairs to a portion of our storage tanks.

Crude Oil Supply and Logistics – Adjusted EBITDA for the Crude Oil
Supply and Logistics segment was $2.0 million for the fourth quarter of
2014 and $9.2 million for the year ended December 31, 2014, compared to
$3.0 million for the fourth quarter of 2013, and $14.7 million for the
year ended December 31, 2013. The decrease for the fourth quarter of
2014 compared to the fourth quarter of 2013 was primarily due to a $2.4
million decrease in adjusted gross margin as a result of less favorable
regional crude pricing differentials and was partially offset by $1.5
million of lower operating expenses. The decrease for the year ended
December 31, 2014 compared to the year ended December 31, 2013 was
primarily due to a $7.3 million decrease in adjusted gross margin from
lower sales volumes and less favorable regional crude pricing
differentials and was partially offset by $2.2 million of lower
operating expenses.

Refined Products Terminals and Storage – Adjusted EBITDA for the Refined
Products Terminals and Storage segment was $3.1 million for the fourth
quarter of 2014, and $10.7 million for the year ended December 31, 2014,
compared to $3.4 million for the fourth quarter of 2013 and $16.1
million for the year ended December 31, 2013. The decrease for the
fourth quarter of 2014 compared to the fourth quarter of 2013 was
primarily due to a $1.0 million decrease in adjusted gross margin as a
result of a decrease in refined product sales and was partially offset
by $0.7 million of lower operating expenses. The decrease for the year
ended December 31, 2014 compared to the year ended December 31, 2013 was
primarily due to a $2.5 million decrease in adjusted gross margin from
lower refined product sales and reduced throughput at the North Little
Rock terminal attributable to supply disruptions and competition.
Adjusted EBITDA for the year ended December 31, 2014 was also impacted
by $2.8 million in one-time costs associated with the improvement and
remediation of measurement and quality control processes at our
terminals.

NGL Distribution and Sales – Adjusted EBITDA for the NGL Distribution
and Sales segment was $5.6 million for the fourth quarter of 2014, and
$15.5 million for the year ended December 31, 2014, compared to $4.0
million for the fourth quarter of 2013 and $15.5 million for the year
ended December 31, 2013. The increase for the fourth quarter of 2014
compared to the fourth quarter of 2013 was primarily due to a $2.0
million increase in adjusted gross margin as a result of an increase in
sales volumes from the expansion of our customer base, particularly
those with industrial applications.

Cash Distributions

On February 13, 2015, JP Energy paid a pro-rated cash distribution of
$0.3038 per common unit for the three month period ended December 31,
2014. This distribution was JP Energy’s first distribution and
corresponds to the minimum quarterly distribution of $0.3250 per unit,
or $1.30 on an annualized basis, pro-rated for the portion of the fourth
quarter following the closing of our initial public offering on October
7, 2014.

2015 Outlook and Guidance

JP Energy expects Adjusted EBITDA of $50 million to $60 million and
maintenance capital expenditures of approximately $5.9 million for the
year ending December 31, 2015. We expect to achieve our target
distribution coverage ratio of 1.2x by the fourth quarter of 2015, with
a full-year distribution coverage ratio in the range of 0.8x – 1.0x.
Organic growth capital expenditures are estimated to range from $75
million to $100 million, with the substantial majority of these
investments to be made on our Silver Dollar Pipeline system. This
guidance does not include any positive impacts from drop down
transactions or from any potential third-party acquisitions which we
will continue to evaluate throughout 2015.

Earnings Conference Call Information

We will hold a conference call on Thursday, March 12, 2015, at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time) to discuss our fourth quarter and
full-year 2014 financial results. The call can be accessed live over the
telephone by dialing (877) 407-0784, or for international callers, (201)
689-8560. A replay will be available shortly after the call and can be
accessed by dialing (877) 870-5176, or for international callers (858)
384-5517. The passcode for the replay is 13602810. The replay of the
conference call will be available for approximately two weeks following
the call.

Interested parties may also listen to a simultaneous webcast of the call
on our website at www.jpenergypartners.com
under the “Investors” section. A replay of the webcast will also be
available for approximately two weeks following the call.

Adjusted EBITDA and adjusted gross margin are supplemental, non-GAAP
financial measures used by management and by external users of our
financial statements, such as investors and commercial banks, to assess:

our operating performance as compared to those of other companies in
the midstream sector, without regard to financing methods, historical
cost basis or capital structure;

the ability of our assets to generate sufficient cash flow to make
distributions to our unitholders;

our ability to incur and service debt and fund capital expenditures;
and

the viability of acquisitions and other capital expenditure projects
and the returns on investment of various investment opportunities.

We believe that the presentation of Adjusted EBITDA and adjusted gross
margin provides information useful to investors in assessing our
financial condition and results of operations. The GAAP measure most
directly comparable to Adjusted EBITDA is net income (loss) and the GAAP
measure most directly comparable to adjusted gross margin is operating
income (loss). These non-GAAP measures should not be considered as
alternatives to the most directly comparable GAAP financial measure.
Each of these non-GAAP financial measures exclude some, but not all,
items that affect the most directly comparable GAAP financial. Because
Adjusted EBITDA and adjusted gross margin may be defined differently by
other companies in the our industry, our definitions of these non-GAAP
financial measures may not be comparable to similarly titled measures of
other companies, thereby diminishing their utility.

Disclosures in this press release contain “forward-looking statements.”
The words “believe,” “expect,” “anticipate,” “plan,” “intend,”
“foresee,” “should,” “would,” “could” or other similar expressions are
intended to identify forward-looking statements, which are generally not
historical in nature. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there can be
no assurance that future developments affecting us will be those that we
anticipate. All comments concerning our expectations for future revenues
and operating results are based on our forecasts for our existing
operations and do not include the potential impact of any future
acquisitions. Our forward-looking statements involve significant risks
and uncertainties (some of which are beyond our control) and assumptions
that could cause actual results to differ materially from our historical
experience and our present expectations or projections. Important
factors that could cause actual results to differ materially from those
in the forward-looking statements include, but are not limited to the
price of, and the demand for, crude oil, refined products and NGLs in
the markets we serve; the volumes of crude oil that we gather, transport
and store, the throughput volumes at our refined products terminals and
our NGL sales volumes; the fees we receive for the crude oil, refined
products and NGL volumes we handle; pressures from our competitors, some
of which may have significantly greater resources than us; the cost of
propane that we buy for resale, including due to disruptions in its
supply, and whether we are able to pass along cost increases to our
customers; competitive pressures from other energy sources such as
natural gas, which could reduce existing demand for propane; the risk of
contract cancellation, non-renewal or failure to perform by our
customers, and our inability to replace such contracts and/or customers;
leaks or releases of hydrocarbons into the environment that result in
significant costs and liabilities; the level of our operating,
maintenance and general and administrative expenses; regulatory action
affecting our existing contracts, our operating costs or our operating
flexibility; failure to secure or maintain contracts with our largest
customers, or non-performance of any of those customers under the
applicable contract; competitive conditions in our industry; changes in
the long-term supply of and demand for oil and natural gas; volatility
of fuel prices; actions taken by our customers, competitors and
third-party operators; our ability to complete growth projects on time
and on budget; inclement or hazardous weather conditions, including
flooding, and the physical impacts of climate change; environmental
hazards; industrial accidents; changes in laws and regulations (or the
interpretation thereof) related to the transportation, storage or
terminaling of crude oil and refined products or the distribution and
sales of NGLs; fires, explosions or other accidents; the effects of
future litigation; and other factors discussed from time to time in each
of our documents and reports filed with the Securities and Exchange
Commission. Any forward-looking statement applies only as of the date on
which such statement is made and we do not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.

JP ENERGY PARTNERS

CONSOLIDATED BALANCE SHEETS

(Unaudited)

December 31,

December 31,

2014

2013

ASSETS

(in thousands, except unit data)

Current assets

Cash and cash equivalents

$

3,325

$

3,234

Restricted cash

600

-

Accounts receivable, net

108,725

122,919

Receivables from related parties

10,548

2,742

Inventory

20,826

38,579

Prepaid expenses and other current assets

4,915

4,991

Total Current Assets

148,939

172,465

Non-current assets

Property, plant and equipment, net

262,148

238,093

Goodwill

248,721

250,705

Intangible assets, net

148,311

175,101

Deferred financing costs and other assets, net

5,054

7,038

Total Non-Current Assets

664,234

670,937

Total Assets

$

813,173

$

843,402

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities

Accounts payable

$

88,052

$

95,765

Payables to related parties

-

1,274

Accrued liabilities

28,971

22,748

Capital leases and short-term debt

229

538

Customer deposits and advances

5,050

2,722

Current portion of long-term debt

383

698

Total Current Liabilities

122,685

123,745

Non-current liabilities

Long-term debt

84,125

183,148

Note payable to related party

-

1,000

Other long-term liabilities

5,683

2,116

Total Liabilities

212,493

310,009

Commitments and Contingencies

Partners' capital

Predecessor capital

-

304,065

General partner interest

-

404

Class A common units (8,004,368 units authorized, issued and
outstanding at December 31, 2013)